The main point of research was to make an accurate decision for buying or hire purchase the CNC Laser machine. This was dependent on replies from the companies on requesting the quotes, but unfortunately no email was received. Below is attached the confirmation of sending one of the emails.
Thank you Hanna Jurkowska for your contacting us: 04/04/2014 04:04:04 pm
Dear Hanna Jurkowska ,
Thank you for your feedback. We will contact you shortly.
Your email was: email@example.com
In the research has been also involved: reading numbers of books, as much as, various numbers of sources gained from the internet. This helped in …show more content…
The rate per order is £28.57 and I have made an assumption that the wholesaler needs to put an order once per month. For a batch cost the amount of rate should be divided by the number of batches produce in a month (number of batches per month is 8).
General factory support activities
1) Production scheduling of £75,000 is divided by the total numbers of production runs of 650, and the rate is £115.38, and for every batch will be required two setups, what gives a total cost per batch of £230.76.
2) Set-up machine cost of £48,000 is divided by a total set up hours of 450, That will give a rate £106.67 and the total cost of a batch is multiplied by 2 as there will be two set ups per batch, so that will give a cost of 213.34.
3) Quality inspection will be required every 4th batch, so I made an assumption that total cost of £18,000 needs to be divided by the total hours of first item inspection - 120. That will give a rate £150 and the cost for the batch of £37.50.
The maintenance cost and depreciation was calculated on a basis per unit and batch only, it hasn't been absorbed in the whole company, as these two costs are directly related to the purchase of new machine, which exactly will be needed to produce this special chair, and it is not going to be used for other products.
Cost Statement - ABC
Cost Per Batch
Cost Per Chair
Aluminium and Epoxy